By Group 5-

Fizza Beg
Aayushi Gupta
Nida Tanveer
Sameeya
Mirza Anam Beg
Reesha Masood
Maria Sufia
Ushba
 OVERVIEW

◈History behind the taxi cab

◈Innovations through centuries
◈Current taxi services model
◈Ola Cabs
◈Challenges
◈Proposed solutions
◈Future prospects
 THE HISTORY BEHIND THE TAXICAB

◈Taxis have become legendary in today’s

culture.
◈Ever wondered how taxis began?
◈You have an idea that it might have something
to do with the invention of the automobile. We’ve seen Jimmy Fallon learn
◈Or did taxis exist before the car? how to drive one on the big screen.
◈Everything you need to know about the taxis
cab - from it’s humble beginnings to it’s
visionary future.
Miley Cyrus sang about her experience
inside one, and books often describe
the hero or heroine’s journey in this
yellow vehicle.
 TAXIS OF THE PAST
◈First taxi - 17th century Europe.
Hired horse drawn Hackney
Carriages to travel across London,
Paris, and other major European
cities. Hackney Carriage

◈By the mid 1800’s - Hansom Cab

designed by Joseph.
Smaller, lighter carriage that only
required one horse to pull it.

Hansom Carriage
 TAXIS GET A MOTOR
◈19th century -Karl Benz invented the automobile.
◈1897 - first motorized taxis came about. Walter C. Bersey created a line of taxicabs in
London, while Samuel’s Electric Carriage and Wagon Company of New York employed
similar vehicle.
◈1899 - German inventor crafted Victoria - the first gasoline-powered and taximeter-
equipped cab.
◈By 1907 - New Yorkers found same vehicle on city streets. To make cabs more visible
to patrons, one taxi driver (Henry N. Allen) painted his cabs yellow.
◈1920s - taxis again changed form. The Checkered Cab Manufacturing Company
designed black and white checkered strips.
◈1950 - 12,000 taxicabs serviced New York. And as time passed, these vehicles spread
like wildfire across the nation.
 TAXI SERVICES IN INDIA
◈City cool cabs: 1997 by Mr. Shanker Agunde
Started with one Fiat car in Mumbai.
initiative taken by the taxi mens’ union to provide Luxury taxis in Mumbai.
Now – fleet has Ford Fiesta, Tata Indigo ,Tata Indica, Maruti Esteem, Toyota Innova, Honda City.

◈ Carzonrent: 2000, by Rajiv K. Vij.

Short-term objective was to provide a safe and reliable medium of travel to customers and a long-term
vision of giving form and structure to the unorganized Indian personal ground transportation industry and
helping the industry get its due recognition.
Offers end-to-end long and short term car rental solutions.

◈EasyCabs and COR- Car Rentals

Radio taxi service units from Carzonrent.
Outstation and local car rental services
self-drive services - MYLES.
 Mega Cabs: Launched in 2001, it’s attributes assure safety, comfort, and reliability to
every customer. They encouraged a system of transparency in pricing and deals.
Running in cities like Delhi, Kolkata, Bengaluru, Chandigarh, Amritsar and Pune.

 Savaari: Founded in 2006 to fill the gap where you can get quality car rental services
at nominal rates irrespective of which city in India you want to hire car rental services
In the past 5 years, they have expanded and are providing car rental services in 53
cities across India.

 Meru cabs: Founded by Neeraj Gupta in Mumbai on April 2007. In January 2016,
Meru Cabs started ride sharing options in new Delhi. Meru Cabs was one of the first
companies to launch metered “Radio cabs” in India under its brand “Meru”.
Headquartered in Mumbai, it provides a radio taxi service in Mumbai, Delhi,
Hyderabad and Bengaluru.
• OlaCabs: Founded on 3rd December 2010, by Bhavish Aggarwal (CEO) and Ankit Bhati. Based out
of Bengaluru it is among the fastest growing taxi hiring firms. Taxi booking facility can be availed
through app, website or through calls. By 2014, the company had expanded to a network of more than
18,000 cars across more than 65 cities. Today, Ola has more than 1,50,000 plus cabs registered on its
platform and is present in more than 100 cities across the country .

• Uber: It was founded as “UberCab” by Travis Kalanick and Garrett Camp in 2009. An American
international company headquartered in San Francisco, California, it develops, markets and operates
the mobile-app-based transportation network also called Uber. The Uber app allows consumers to
submit a trip request, which is routed to crowd-sourced taxi drivers. Beginning in 2012, Uber expanded
internationally. Uber expanded to India in 2013. In 2014, it experimented with carpooling features and
made other updates.

• TaxiForSure: It started its operations in June 2011 and have since enabled bookings in
Bangalore and Delhi. TaxiForSure works with various taxi operators and enable them with technology to
ensure customers get an easily accessible, safe & reliable taxi ride ‘for sure’. Expansion plans are on
the cards.
 HOW DID OLA START?
◈Saw the amount of potential that an
extraordinary cab booking service could
have
◈Changed business from his earlier start-
up to the one we today know as –
OlaCabs.
◈In December 2010 joined by co-founder
Ankit Bhati in
MARKETING MIX OF OLA
 PRODUCT
◈Ola Cabs is a mobile app
used as a service provider
for personal
transportation.
◈Convenience without
stepping out.
◈Its fleet includes Honda Civic, Skoda
Rapid, Altis and Toyota Innova and
offers different types of cab service
that have a diversified range from
luxury to economic like :
1.Ola Mini
2.Ola Sedan
3.Ola Prime
4.Ola Rental
5.Ola Outstation
 PLACE
◈Ola Cabs is a company dealing via an online network. Cabs can be
easily reserved through its own website and via Ola mobile app that
can be downloaded from The App Store and Google Play Store. The
company started its operations from metro city Mumbai in
Maharashtra but later shifted its base to Bengaluru in Karnataka.
◈By the year 2014, it had extended its network to include nearly
200,000 cars that were running in nearly one hundred two tier, three
tier and metro cities
 PRICE
◈Ola Cabs by the year 2015, September, was
valued at 5 billion dollars with its estimated
revenues at the end of the fiscal year 2014-15
at 62 million dollars.
◈It included options for both cash and cashless
via Paytm.
◈Offers price flexibility with its range of vehicles
that includes economic-range, mid-range and
high-range.
 PROMOTION
◈Ola Cabs is a fastest growing company in India related to rental cars
because it has a first-mover advantage over other companies. It has
adopted an extensive marketing policy to create high and positive
brand awareness amongst consumers.
 MARKETING STRATEGY OF OLA CABS
1. CHALO NIKLO Campaign for brand awareness
Multi channel nation wide launch
360 degree integrated marketing approach – was everywhere; in touch with the
customers
◈Go-to transport platform choice
◈Not successful

2. ‘Marketing on Facebook’ Campaign

◈To meet specific business goals – increasing brand awareness and sales, boosting
online searches, targeting the right audience.
◈Built App awareness
◈Directed audience to its website
◈Took advantage of FB’s ad format( photo and video ads), app analytics (to track and
measure performance)
3. Targeting specific audience
• Customers of above 21 years
• Segmented its audience by gender and whether they accessed FB via
mobile or desktop.
• Location based targeting – to reach cities that were priority markets

 Result - Revenues grew by 10 times.

STRATEGY:
-Expanding their operations
-Gaining customer base in various cities
-Customizes its operations to suit the needs of its local market
-Heavily financed currently - Received 676.8 M through 6 rounds of funding
-Taking help from outside investors until they break even and become profitable by
gaining a faithful customer base in the market.

Not aimed at earning profit, majorly. (Pays drivers more per km than
they charge)

MOTIVE/ OBJECTIVE:
-To gain market share
-Achieve economies of scale while providing a delightful customer experience
-Ola now claims to have 80 % of the taxi market share in India.
CHALLENGES OF TAXI INDUSTRY

◈Customers’ point of view

◈Taxi drivers’/owners’ point of view

 Customers’ point of
view

Customers Competition with

Quality issues Fare issues Safety issues public transport
service
 Drivers’/Owners
point of view

Data charges Law against

Customers’ Working Drivers’ Local
and network surge
availability hours training unions
issues pricing
STRATEGIES TO OVERCOME THE CHALLENGES

◈Safety Issues - By introducing technology that

ensures the passengers safety , like the
application Taxi Seguro (Safe Taxi)

◈Key features :
◈ Track the taxi’s route ,
◈ Determine the approximate duration of the
ride,
◈ Information on driver’s credentials.
CHARGES AND FARE ISSUES :
Like the companies should creatively use price to focus on per trip
profitability.
Also, certain discounts can be made available to the loyal customers
of the company.

QUALITY ISSUES:
Using SERVQUAL method, the service quality of the taxi service can be
measured.
Includes: Reliability, Assurance ,Tangibles ,Empathy and Responsiveness.
•COMPETITION WITH PUBLIC TRANSPORT:
-This can be overcome by using Ride Sharing or shared mobility
strategy.
-This technology enables the users to gain short term access to
transportation modes on an as needed basis.

•CUSTOMER SERVICE :
-The best way to interact with the customers is through the online medium
and taxi service companies need to develop an app which caters to the
target audience.
 OVERCOMING CHALLENGES FACED BY TAXI
OWNERS/DRIVERS
• Knowing the demand for taxis at different locations and times.

• Providing fixed working hours and shifts with breaks.

• Technical training and local knowledge.

• Free data and calling.

• Personality development programs for drivers

• Ability to rate customers.

 FUTURE PROSPECTS
 DRIVERLESS TAXI ◈ GM (with Lyft)
 Google Self-Driving ◈ Ford
Car Project started in ◈ Honda
2009, now known as ◈ Toyota
Waymo. ◈ Nissan
-Google spent over $1.1 ◈ Volvo (with Uber)
billion on the project ◈ Hyundai
between 2009 and 2015 ◈ Daimler (with
-Vehicles: Toyota, Audi, Uber)
Lexus ◈ Fiat
◈ nuTonomy launched ◈ BMW
robo-taxi service in
Singapore in 2016
 Tesla Autopilot
-Entered in 2014 with Tesla Model S
and X
-Two types of hardware used
i. Hardware 1: Camera, radar,
ultrasonic acoustic location
sensors for a 360⁰ view
ii. Hardware 2: Nvidia Drive™ PX 2
which provides level 5
automation. Involves 8 surround
cameras, 12 ultrasonic sensors
and radar with enhanced
processing capabilities
NVIDIA DRIVE™ PX
◈AI car computer introduced at CES
2015

◈Started with Drive PX, CX, then PX 2

and then PX Pegasus in Oct 2017
- Single processor (AutoCruise)
- Combination of multiple
processors delivering 320 trillion
deep learning operations per
second (Level 5 autonomous driving)
◈FEATURES:

- Sensor Fusion: Fuses data from multiple cameras, lidar, radar, ultrasonic sensors.
- End-to-end HD Mapping: creation and updating of highly detailed maps for
autonomous vehicles, planning a safe path forward.
- Supports ASIL-D (Automotive Safety Integrity Level D) - highest level of automotive
functional safety
-Nvidia Drive Software
Supports developing autonomous
applications on Nvidia Drive PX
hardware.

-Nvidia Drive IX Software

Coupled with Drive PX hardware.
Collects sensor data from mics, cameras,
both inside and outside the car, to track
the environment around the driver.
Even when the car isn't driving itself, it is
looking out for you.
◈Going ‘electric’ by
- 2040: UK and France
- 2025: Norway and
Netherlands
- 2030: India

◈ Air Taxi (Eg: Linear Air)

- Convenient
- Cost effective
- Safe

◈ Unmanned drone:
Volocopter
 REFERENCES
◈http://www.reuters.com
◈https://www.nvidia.com/
◈http://www.linearair.com/
◈https://www.forbes.com
◈ issuu.com
◈ m.todayonline.com
◈ www.quora.com
◈ www.marsdd.com
◈ Harvard business review
◈ www.huffingtonpost.in
◈http://www.exchange4media.com/
◈http://www.ciim.in/ola-cabs-business-strategy-case-study
◈https://www.marketing91.com/marketing-mix-ola-cabs/
◈https://venturebeat.com/
 LEVELS OF AUTOMATION
◈0 issues warnings but has no vehicle control.
◈1 Driver and automated system shares control. Eg; Autonoumos Cruise Control, Parking Assistance
◈2 full control of the vehicle (accelerating, braking, and steering)
◈3 driver can safely turn their attention away from the driving task
◈4 no driver attention is ever required for safety, i.e. the driver may safely go to sleep or leave the driver's
seat.
◈5 No human intervention is required. An example would be a robotic taxi.